This is a question that was asked of me a few days ago and one which I believe is worth addressing – especially with all the Bitcoin scams, pyramid schemes, Ponzi schemes and get-rich-quick schemes doing the rounds.

So, first off, are all Bitcoin platforms – or “schemes” – Ponzi schemes or pyramid schemes?

The answer? Definitely not. If there is a legitimate product attached to the business opportunity, then it cannot be a Ponzi or pyramid scheme. A pyramid scheme or Ponzi scheme exists only when money is made (or promised) through the recruiting of others. If there is a product (for example, the mining of Bitcoin) – as in the case of Bitclub Network – it cannot be a Ponzi or pyramid scheme, and becomes a legitimate operation. Especially if it’s on the Blockchain – see www.blockchain.com – and it’s mining operations are open to viewing 24/7, as they are in Bitclub’s case. More so, if it has a four year track record, with all members being paid daily.

What are the risks attached to buying Bitcoin?

Well, if the Bitcoin price goes to zero, you will lose your money. This goes without saying. The chances of it going to zero, however? Not much, in the opinion of those active in the cryptocurrency space.

Whilst the Bitcoin price has come down significantly from its high of nearly $20 000 in December last year – it’s currently at the $4 000 level – and whilst it COULD come down more, there are many analysts who are extremely bullish about the future of Bitcoin and predictions abound of Bitcoin regaining its highs, and indeed, going higher than its previous high. However, IF the price were to go down further, you can be sure that there will be investors around the world putting in buy orders, which will push it up again. This being the case, the changes of Bitcoin going to zero are remote indeed.

Over the last ten years, the price of Bitcoin has been incredibly volatile. This is the nature of the coin. Bitcoin nay-sayers or “haters” have often rubbed their hands in glee at bitcoin’s projected demise, only to see it bouncing back in time. If there is one thing that Bitcoin is, it’s RESILIENT. On this note: there are many leaders within Bitclub Network who WANT the Bitcoin price to stay low. Why? Because the goal is to earn as much Bitcoin as one can, and because one is paid MORE Bitcoin when the price is lower than higher. On the other hand, those who TRADE Bitcoin or who are purely holders of Bitcoin, want to see a HIGHER Bitcoin price.

The risk of Bitcoin being banned around the world?

Not very good. Why? Because whilst there are undoubtedly Governments who are anti-bitcoin (India being a prime example), there is no consensus between countries globally. Countries like Japan, South Korea, South Africa, Malta, Switzerland, Estonia, Venezuela are – if not embracing of Bitcoin- then accepting of Bitcoin and in all likelihood would not be in favour of a blanket ban on the cryptocurrency. Rather, regulation will be the order of the day and in fact, many countries are looking at regulatory steps as we speak. It’s just a question of time before Bitcoin is regulated globally, and this will likely be a GOOD thing.

The risk of Bitclub Network collapsing?

Again, not likely. Bitclub Network has been around for four years. Whilst up until now solely a MINER of Bitcoin, it will soon also be a TRADER of Bitcoin. This besides, other crypto-related products will also be launched within the next few months, so things are looking very good.

In terms of membership, Bitclub Network has grown from having just a few hundred members four years ago to having over 675 000 members today – with most of these members being in SE Asia and Africa. These numbers will continue to grow. The plan is to build a massive global distribution network, distributing a range of crypto-related products. Whilst it is true that ANY organisation could conceivably collapse, Bitclub Network is as solid as they come.

The risk of Bitcoin mining becoming unprofitable?

There is risk attached to this and there have indeed been instances of Bitcoin miners closing down recently. Bitclub Network is acutely aware of the need to stay profitable, and is currently developing a large facility in Montana to keep a lid on electricity and other costs to safeguard its profitably. This facility will bolster the primary facility in Iceland and its other facilities around the world. If, however, the Bitcoin price fell dramatically, making mining unfeasible, Bitclub’s mining pools would be PAUSED, not CLOSED – and would start mining again as soon as the price increased sufficiently to ensure the profitability of Bitcoin mining for its members. It’s important to note that Bitclub Network will not be solely reliant on mining though, and the next few months will see mining becoming just one component of the total product offering.

Other risks attached to buying Bitcoin and joining Bitclub Network?

Not many come to mind, although the threat posed by hackers could be one. So it’s wise to protect oneself as best one can. Indeed, all members of Bitclub Network are actively encouraged to download the Google Authenticator app and sync it to their accounts. This is in fact hugely important as hackers know all the tricks and become more sophisticated by the day.

One other risk is joining Bitclub Network under the WRONG person.

Anyone wanting to join Bitclub Network has to register as a FREE MEMBER under an existing member BEFORE they can upgrade to a paid member. If you register under (for example) a family member or friend who does NOT have a good understanding of Bitcoin or of how Bitclub Network works, you could very well encounter problems down the line. This being the case, it is extremely important to register under someone who has the necessary knowledge and can support you and answer any questions you might have.

Other risks?

Aside from the risks mentioned above, I honestly cannot think of any others at this juncture…but I’m happy to answer any questions if you have? more@bitclub.co.za or +27 83 444 9888